In Summary
  • Mr Godfrey Mutabazi, the UCC executive director, said yesterday K2 will have to furnish the regulator with a way forward even after resolving the tax issue.
  • However, he noted, the telecom had not been on air since the beginning of the year given a billing dispute with Africell, which had become its new host after Orange exited the market.

Kampala. Buganda kingdom-owned telecom, K2, has been closed over failure to pay Shs96m in taxes.

Mr Ian Rumanyika, the Uganda Revenue Authority public and corporate affairs manager, yesterday said efforts to recover the tax obligation had failed as K2 has repeatedly fallen back on various commitments.

“We have had a long discussion with K2 since 2013 until this year. We [had worked on a MoU but] it has not been realised as expected,” he said, adding the debt had been accumulated over failure to remit Pay as You Earn and Local Exercise Duty.

K2 Telecom has previously had challenges, especially after the takeover of Orange, which had been hosting its operations.

Mr Noah Kiyimba, the Buganda kingdom information minister, yesterday told Daily Monitor that the offices had been sealed off by URA.

“Currently we are in negotiation to see how this matter can be sorted as soon as possible because it requires some reconciliation and settlement,” he said.

However, he noted, the telecom had not been on air since the beginning of the year given a billing dispute with Africell, which had become its new host after Orange exited the market.

“We experienced some over billings which we could not bear and this forced us to halt operations,” he said, adding they were in negotiations with Africell to have the telecom back on air pending completion of discussions with Uganda Communications Commission (UCC).

Mr Godfrey Mutabazi, the UCC executive director, said yesterday K2 will have to furnish the regulator with a way forward even after resolving the tax issue.

“They must clear because you are not supposed to be closed like that when you are an operator,” he said.

dnakaweesi@ug.nationmedia.com